23andMe files for bankruptcy as CEO Anne Wojcicki steps down to become bidder

23andMe Files for Bankruptcy, CEO Anne Wojcicki Resigns

23andMe, the genetic testing company, has filed for Chapter 11 bankruptcy protection and announced the immediate resignation of its co-founder and CEO, Anne Wojcicki1 2. This development comes after years of financial struggles and unsuccessful attempts to take the company private.

23andMe filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Missouri1 4.
The company intends to continue operating during a court-supervised sale process4.
Anne Wojcicki resigned as CEO but remains on the board of directors4.
Joe Selsavage, the Chief Financial and Accounting Officer, has been appointed as Interim CEO2.

Reasons for Bankruptcy:

Declining consumer interest in at-home DNA testing4
Unsuccessful transition into drug development4
A recent data breach leading to a $30 million class-action settlement7
Accumulation of $2.3 billion in debt7

Wojcicki's Future Role:

Anne Wojcicki stated that she resigned "so I can be in the best position to pursue the company as an independent bidder"2. She expressed her intention to participate in the bidding process for 23andMe's assets4.

Customer Data Concerns:

The bankruptcy filing has raised concerns about the privacy and security of customer genetic data. 23andMe has stated that there will be "no changes to the way the Company stores, manages, or protects customer data"1 4. However, experts caution that a new owner could potentially change privacy policies in the future3.

Financial Details and Next Steps

23andMe has secured a commitment for up to $35 million in debtor-in-possession financing5.
The company plans to solicit bids over a 45-day period and may conduct an auction if multiple qualified bids are received5.
23andMe's stock price has dropped by more than 97% since going public in 20214.

This bankruptcy filing marks a significant turning point for 23andMe, a once high-flying company that helped popularize direct-to-consumer genetic testing. The outcome of the sale process and the future of customer data privacy will be closely watched by industry observers and consumers alike.